Economic Growth To Rise To 3.4 Per Cent In Sub-Saharan Africa In 2018 : IMF

the IMF said in a report on Monday Economic growth is expected to rise to 3.4 per cent in sub-Saharan African 2018 from 2.6 per cent in 2017,.

The IMF, however, warned that rising debt and political risks in larger economies would weigh down future growth.

The IMF said a good harvest and recovery in oil output in Nigeria would contribute more than half of the growth in the region this year.

The fund added that an uptick in mining and a better harvest in South Africa as well as a rebound in oil production in Angola will add to growth.

The fund said South Africa has been clouded by the rule of Jacob Zuma, who has battled scandals, including corrupt allegations ahead of his ANC party’s conference in December to elect a new party leader.

To help maintain growth, IMF advised countries to diversify from dependence on commodities and oil, implement fiscal reforms to stimulate growth and attract private investment.

The IMF said public debt would rise to 53 per cent of GDP this year from 48 per cent in 2016. More worryingly, it said, most countries were now borrowing from local banks, which could distabilise the domestic financial sector and fuel inflation.

Debt servicing costs were also up, but high debt levels were in particular complicating the economic outlook for six nations, including Zimbabwe, which is gripped by a crunch forex shortage.

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